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Case Commanders

India's premium smartphone market is growing rapidly, yet the current market share is only 4%. The strategy aims to double this share to 8% in three years without lowering prices or diluting luxury positioning, focusing instead on affordability through EMI options and assured buyback. The approach emphasizes building trust and converting aspiration into ownership while maintaining global pricing integrity.

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saniagoyal27
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0% found this document useful (0 votes)
3 views6 pages

Case Commanders

India's premium smartphone market is growing rapidly, yet the current market share is only 4%. The strategy aims to double this share to 8% in three years without lowering prices or diluting luxury positioning, focusing instead on affordability through EMI options and assured buyback. The approach emphasizes building trust and converting aspiration into ownership while maintaining global pricing integrity.

Uploaded by

saniagoyal27
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

INTRODUCTION

India’s Prestige Paradox

The Opportunity The Gap The Insights


India: 750M+ smartphone Aurelius Global Ultra- 60% premium phones
users Premium Share: 45%+ purchased via EMI
Premium segment (₹50K+) India Share: 4% 46% urban consumers
growing at 25–30% CAGR Flagship Price: ₹80,000 comfortable taking loans
Mass-premium (₹30K– Target Segment Income: Upgrade decisions driven
₹80K) growing at ~20% ₹25K–₹60K/month by monthly affordability
CAGR
Young, aspirational, India is not price-sensitive.
upgrade-driven It is liquidity-sensitive.
population

Objective: Double India market share from 4% → 8% in 3 years


Without:
Launching a cheaper model
Discounting price
Diluting luxury positioning
Reframing Ownership
₹80,000 → ₹1,667 / month
Strategic True Monthly Ownership Cost
Lever Structure = (₹80,000 – ₹40,000) ÷ 24
Effect
= ₹1,667/month
= 5.5% of ₹30K income
Device Price ₹80,000 Maintain global parity

1. Affordability Within Behavioral Threshold


EMI = ~10% of monthly income
Down Payment ₹8,000 (10%) Low psychological entry Aligned with consumer finance comfort band

2. Risk-Adjusted Ownership
EMI (24 months) ₹3,000/month 10% of ₹30K income Assured ₹40,000 buyback
Reduces resale uncertainty and accelerates upgrade intent

Assured Buyback ₹40,000 after 24 months Removes resale risk 3. Premium Equity Protected
No discounting
No product dilution
Effective Cost ₹40,000 over 2 years ₹1,667/month real cost Global pricing integrity maintained
From Aspiration to Ownership
Experience (Tier 1 Instant Finance Desk
Tier 2/3 Scale Strategy
Flagships)

Immersive demo 10-minute EMI


zones approval Aurelius Studio (store-
Creator workshops NBFC partnerships in-store)
After-sales trust On-the-spot digital Pop-up luxury vans
counters KYC Local-language
advisors

In India, trust converts


Assured Buyback Ecosystem Onboarding aspiration into ownership
Counter
Cloud auto-setup
Instant trade-in valuation Aurelius Pay
2-year guaranteed resale activation
6-month free
service bundle
From Device Seller to Lifetime
Value Engine
3-Year Strategic Impact
Revenue 3-Year
Strategic Role
Stream Value Market Share Margin Protection

Device ₹80,000 Entry anchor


4% → 8% ₹80K price maintained
PLI reduces cost pressure

Services (₹300×36) ₹10,800 Recurring revenue

Wearables ₹15,000 Ecosystem depth


Retention
2-year guaranteed upgrade
Total CLV ₹1,05,800 +33% uplift
cycle
Higher ecosystem
Rate Targets Services: 60% Wearables: 40% dependency

Aurelius does not need to be cheaper in India.


It needs to be financially smarter.
APPENDIX
Key Assumptions
Device cost: ₹67,000 (~84% of retail price)
Gross margin: ₹13,000 per unit
Financing risk shared with NBFC
Buyback resale via certified secondary channel
Target affordability ratio: ≤10% of income
Premium growth driven by Tier 1 + aspirational Tier 2

Sensitivity Check
If buyback drops to ₹35,000:
Effective monthly cost =
₹1,875
Still < 7% of income

Model remains viable.


Thank You
Team: Case Commanders
Members: Lakshita Sehgal
Srishti Kocher
Tanya Goyal

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